Chapter Four - Forested Watersheds, Water Resources, and Ecosystem Services, with Examples from the United States, Panama, and Puerto Rico

Abstract

Forested watersheds provide critically important ecosystem services as sources of high-quality water for drinking, agriculture, and industry. Montane forested watersheds provide additional services and benefits, including hydroelectric energy, wood products, recreation, esthetic values, and hazard mitigation. However, landowners in most countries are compensated at minimal rates, if at all, for these services to society, with a result that services are not provided at optimal levels. In some countries, including the US, modest public and private programs offer payments to landowners and serve to maintain and restore these ecosystem services. The provision of ecosystem services is further challenged by climate change and global urbanization, particularly in regions of rapid economic growth, where, in some cases, a lack of effective stewardship of river floodplains and upstream forests compromises water, food, hydroelectric energy, wood products, carbon sequestration, maintenance of biodiversity, and a less well-studied but important ecosystem service: reduction of natural hazard and vulnerability. Examples of ecosystem services and their valuation are presented for areas of the US, Panama, and Puerto Rico.